Pets & Animals

Test Bank for Fundamentals of Advanced Accounting 6th Edition by Hoyle

Description
Full download: http://goo.gl/GYVoDk,Test Bank for Fundamentals of Advanced Accounting 6th Edition by Hoyle,6th Edition, Doupnik, Fundamentals of Advanced Accounting, Hoyle, Schaefer, Test Bank
Categories
Published
of 259
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Share
Transcript
  2-1 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 02 Consolidation of Financial Information   Multiple Choice Questions   1.   At the date of an acquisition which is not a bargain purchase, the acquisition method A. consolidates the subsidiary's assets at fair value and the liabilities at book value.   B. consolidates all subsidiary assets and liabilities at book value.   C. consolidates all subsidiary assets and liabilities at fair value.   D. consolidates current assets and liabilities at book value, long-term assets and liabilities at fair value.   E. consolidates the subsidiary's assets at book value and the liabilities at fair value.   2.   In an acquisition where control is achieved, how would the land accounts of the parent and the land accounts of the subsidiary be combined?   A. Option A   B. Option B   C. Option C   D. Option D   E. Option E   Test Bank for Fundamentals of Advanced Accounting 6th Edition by Hoyle Full Download: http://downloadlink.org/product/test-bank-for-fundamentals-of-advanced-accounting-6th-edition-by-hoyle/  Full all chapters instant download please go to Solutions Manual, Test Bank site: downloadlink.org  2-2 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 3.   Lisa Co. paid cash for all of the voting common stock of Victoria Corp. Victoria will continue to exist as a separate corporation. Entries for the consolidation of Lisa and Victoria would be recorded in A. a worksheet.   B. Lisa's general journal.   C. Victoria's general journal.   D. Victoria's secret consolidation journal.   E. the general journals of both companies.   4.   Using the acquisition method for a business combination, goodwill is generally defined as: A. Cost of the investment less the subsidiary's book value at the beginning of the year.   B. Cost of the investment less the subsidiary's book value at the acquisition date.   C. Cost of the investment less the subsidiary's fair value at the beginning of the year.   D. Cost of the investment less the subsidiary's fair value at acquisition date.   E. is no longer allowed under federal law.   5.   Direct combination costs and stock issuance costs are often incurred in the process of making a controlling investment in another company. How should those costs be accounted for in a pre-2009 purchase transaction?   A. Option A   B. Option B   C. Option C   D. Option D   E. Option E    2-3 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 6.   How are direct and indirect costs accounted for when applying the acquisition method for a business combination?   A. Option A   B. Option B   C. Option C   D. Option D   E. Option E   7.   What is the primary  accounting difference between accounting for when the subsidiary is dissolved and when the subsidiary retains its incorporation? A. If the subsidiary is dissolved, it will not be operated as a separate division.   B. If the subsidiary is dissolved, assets and liabilities are consolidated at their book values.   C. If the subsidiary retains its incorporation, there will be no goodwill associated with the acquisition.   D. If the subsidiary retains its incorporation, assets and liabilities are consolidated at their book values.   E. If the subsidiary retains its incorporation, the consolidation is not formally recorded in the accounting records of the acquiring company.   8.   According to GAAP, the pooling of interest method for business combinations A. Is preferred to the purchase method.   B. Is allowed for all new acquisitions.   C. Is no longer allowed for business combinations after June 30, 2001.   D. Is no longer allowed for business combinations after December 31, 2001.   E. Is only allowed for large corporate mergers like Exxon and Mobil.    2-4 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 9.   An example of a difference in types of business combination is: A. A statutory merger can only be effected by an asset acquisition while a statutory consolidation can only be effected by a capital stock acquisition.   B. A statutory merger can only be effected by a capital stock acquisition while a statutory consolidation can only be effected by an asset acquisition.   C. A statutory merger requires dissolution of the acquired company while a statutory consolidation does not require dissolution.   D. A statutory consolidation requires dissolution of the acquired company while a statutory merger does not require dissolution.   E. Both a statutory merger and a statutory consolidation can only be effected by an asset acquisition but only a statutory consolidation requires dissolution of the acquired company.   10.   Acquired in-process research and development is considered as A. a definite-lived asset subject to amortization.   B. a definite-lived asset subject to testing for impairment.   C. an indefinite-lived asset subject to amortization.   D. an indefinite-lived asset subject to testing for impairment.   E. a research and development expense at the date of acquisition.   11.   Which one of the following is a characteristic of a business combination accounted for as an acquisition? A. The combination must involve the exchange of equity securities only.   B. The transaction establishes an acquisition fair value basis for the company being acquired.   C. The two companies may be about the same size, and it is difficult to determine the acquired company and the acquiring company.   D. The transaction may be considered to be the uniting of the ownership interests of the companies involved.   E. The acquired subsidiary must be smaller in size than the acquiring parent.    2-5 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 12.   Which one of the following is a characteristic of a business combination that is accounted for as an acquisition? A. Fair value only for items received by the acquirer can enter into the determination of the acquirer's accounting valuation of the acquired company.   B. Fair value only for the consideration transferred by the acquirer can enter into the determination of the acquirer's accounting valuation of the acquired company.   C. Fair value for the consideration transferred by the acquirer as well as the fair value of items received by the acquirer can enter into the determination of the acquirer's accounting valuation of the acquired company.   D. Fair value for only consideration transferred and identifiable assets received by the acquirer can enter into the determination of the acquirer's accounting valuation of the acquired company.   E. Only fair value of identifiable assets received enters into the determination of the acquirer's accounting valuation of the acquired company.   13.   A statutory    merger   is a(n) A. business combination in which only one of the two companies continues to exist as a legal corporation.   B. business combination in which both companies continue to exist.   C. acquisition of a competitor.   D. acquisition of a supplier or a customer.   E. legal proposal to acquire outstanding shares of the target's stock.  
Search
Related Search
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks
SAVE OUR EARTH

We need your sign to support Project to invent "SMART AND CONTROLLABLE REFLECTIVE BALLOONS" to cover the Sun and Save Our Earth.

More details...

Sign Now!

We are very appreciated for your Prompt Action!

x